In late October 2025, U.S. Class I railroads experienced a 3% year-over-year decline in volumes, moving 498,462 carloads and intermodal units. Despite this dip, year-to-date volumes are up by 2%. The rail industry report highlights strong grain volumes but vulnerabilities in automotive and coal shipments. North American rail volumes are down, with intermodal traffic showing a 4% decline in Week 43. Bulk commodities like grain are thriving, while automotive volumes fell due to a fire at an aluminum plant affecting production. Class I rails like UNP are outperforming, while others like BNSF are lagging behind.

The rail industry faces challenges from trade tariffs and supply disruptions but could benefit from lower rates and consumer demand. Despite these obstacles, Class I railroads are adapting to market conditions. The sector serves as an economic bellwether, with YTD gains showing resilience. The future recovery of rail volumes hinges on resolving auto bottlenecks and stabilizing energy markets. The broader U.S. macroeconomic indicators show growth, with GDP expected to slow before rebounding, reflecting the dynamic nature of the rail industry.

Read more at Yahoo Finance: what it means for 2025